Corporate Travel Management has announced that a “forensic” accounting of its UK operations is expected to conclude in March. Once it is completed, said the announcement, the TMC plans to release its delayed 2025 financial statement.
The company, based in Australia, disclosed last year that its UK division had overcharged clients in the amount of £77.6 million (about $105 million). Its shares were suspended from trading on the Australian Stock Exchange last August, but CTM expects to resume trading on the exchange in the second quarter of this year.
Jamie Pherous, who was managing director of CTM, stepped down earlier this month following the company’s disclosure of its accounting issues.
In its latest trading update, CTM said it has identified “a clearer path forward” after repayments totaling A$15 million (about $10.1 million) to “key impacted UK customers” last December.
The company also said the amount and timing of any additional payments remain subject to a remediation plan that is being finalized. This plan is expected to be funded through medium-term cash flows and available liquidity, the company said.
Additionally, CTM reported that it has conducted a review to determine whether issues similar to those identified in the UK were present in other regions. The results of this review “did not identify any material issues of a similar nature outside the UK.”
Business operations, according to the statement, have continued “with minimal disruption” during the ongoing review of its fiscal years 2023-2025 financial statements and fiscal year 2025 audit. “Operations, customer engagements and supplier commitments continue to progress in the normal course,” the company said.
Acting group CEO Ana Pedersen stated: “The finalization of a remediation plan is well progressed, including constructive discussions on the timing of staged payments.” She continued, “We are making progress with KPMG and certain impacted UK customers, which is giving us a much clearer path toward resolving and finalizing the outstanding matters.” As these key steps are completed, said Pedersen, “they will provide enhanced confidence to customers and our team.”
Pedersen added: “More broadly, we continue to improve governance, controls and systems across the business, and we recognize there is still more work to do as we complete the review and embed these improvements.”
Client retention, according to CTM, “remains strong,” with “limited evidence of structural client loss.” However, it expects “some softness” in the next six months, noting that trading conditions “remain difficult to predict and may result in softer performance, reflecting the current situation and its impact on new client decision-making timelines.”
